PH sees new economic opportunities in ASEAN-China trade deal 3.0

By Joyce Ann L. Rocamora, Philippine News Agency

Ahead of its signing, the Philippines also inked the Second Protocol to Amend the ASEAN Trade in Goods Agreement (ATIGA), another key ASEAN trade upgrade during Malaysia’s chairship. (PCO photo)

KUALA LUMPUR, Malaysia – The upgrade of a China-Association of Southeast Asian Nations (ASEAN) trade deal, set to be signed on Oct. 28, is seen to open up new economic opportunities for the Philippines.

President Ferdinand R. Marcos Jr. will witness the landmark signing of the ASEAN-China Free Trade Area (ACFTA) 3.0 Upgrade during the 47th ASEAN Summit and Related Meetings here.

In a statement issued through Palace Press Officer and Undersecretary Claire Castro on Sunday, Department of Foreign Affairs (DFA) Secretary Ma. Theresa Lazaro said the deal would help bring the region’s economic ties with China modern and aligned with global realities.

“The ASEAN-China Free Trade Area has long been one of ASEAN’s most important economic partnerships. Now, with the 3.0 Upgrade, both sides are working to make this partnership more modern, more comprehensive, and better aligned with today’s global realities,” Lazaro said.

The ACFTA 3.0 could cover possible high-impact cooperation in green and digital economies, as well as sustainable supply chain connectivity, Lazaro said.

The deal would empower micro, small, and medium enterprises to participate more fully in regional value chains, while its strengthened frameworks on fair competition and consumer protection would help ensure inclusive growth.

The original ACFTA guides the following aspects of trade: Trade in Goods; Rules of Origin; Customs Procedures and Trade Facilitation; Standards, Technical Regulations, and Conformity Assessment Procedures; Sanitary and Phytosanitary Measures; Trade in Services; Investment; and Economic and Technical Cooperation.

The ACFTA 3.0 Upgrade now includes guidance on Competition and Consumer Protection; Digital Economy; Green Economy; Supply Chain Connectivity; and Micro, Small, and Medium Enterprises.

Ahead of its signing, the Philippines also inked the Second Protocol to Amend the ASEAN Trade in Goods Agreement (ATIGA), another key ASEAN trade upgrade during Malaysia’s chairship.

Castro said ATIGA was signed on Saturday by Trade Secretary Cristina Roque, who is part of the presidential delegation to Malaysia.

In a separate statement also coursed through the Palace official, Special Assistant to the President on Investment and Economic Affairs Frederick Go said the amendment would improve trade facilitation, dispute settlement, as well as transparency within the region.

Go said certified traders stand to benefit from the expedited cargo clearance throughout ASEAN through the mutual recognition of Authorized Economic Operators (AEOs).

Businesses will find it easier to comply with administrative requirements on self-declaration of origin, with the implementation of the Electronic Certificate of Origin and the acceptance of digital documentation.

Go said the strengthened transparency and cooperation provisions of the agreement would enable ASEAN member-states to prepare for potential impacts of new trade policies.

“The inclusion of new and emerging issues, such as provisions on remanufactured goods, opens avenues for future growth across ASEAN,” he said.

“Once Member States have developed the necessary policy frameworks, regulating this sector can stimulate job creation, support industrial development, and enable certain countries to establish competitive niches,” he added.

Marcos and officials of other ASEAN member states witnessed the handover ceremony of the Second Protocol to Amend ATIGA during the summit plenary session.